Factors contributing to the growth of Personnel Mgt

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Explain the factors that lead to the development of Personnel Management

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(1) Industrial Revolution—Industrial revolution played a very significant role in the development of
industries. Industrial revolution brought in revolutionary charges in the methods and techniques of
industrial production. With the introduction of developed machineries and techniques, various complex
problems emerged. To meet this situation personnel management was emphasised.

(2) Experiments in Social Sciences— New experiments and research in social sciences also
contributed to the growth of personnel management. Hawthorne experiment in the field of psychology
influenced the attitudes of the employers to a great extent. Researches in behavioural sciences also
contributed to the development of personnel management. These experiments developed new
techniques of selection and training.

(3) Fast changes in technology—With the development of science and technology, new methods of
production were developed. New techniques and processes were developed in the fields of marketing
and communication which affected the personnel relations and industrial development. To cope with
the problems of industrial development new management principles were developed.

(4) Awakening in labour—After World War I, workers began to become united and trade unions
emerged. Trade unions expressed the concern of workers about working conditions—levels of wages,
stability of employment and status in the society. Political movements, Russian Revolution in 1917,
emergence of International Labour Organisation in 1919 also subscribed to the concept of industrial
democracy.

(5) Attitude of the government—The attitude of the Government towards labour management and
business have changed considerably. Government's participation in the economic areas has increased
tremendously. Government comes to the rescue of the workers against the exploitation by employers.
The idea of workers' participation in management has been accepted by all the governments of world.
Governments have enacted various labour laws for the welfare of the workers. The government attitude
was one of the factors in development of personnel management.

(6) Cultural and social changes—Education, population problem and changes in social value of the
labour also contributed to the development of personnel management. Education brought the change
in the attitude of labour towards their work. Population problem resulted in the problems of
unemployment, wage fixation, migratory character of the labour and labour turnover. These problems
resulted in the development of personnel management.

(7) Change in the size of the Business—With the increased use of machinery and capital large scale
production become possible. Division of labour and specialisation functions were developed requiring a
large number of workers. In order to get the work done by these people efficiently, the need of
personnel management was felt.

(8) Change in the attitude of Management—Development of scientific management, industrial
revolution, awakening of workers, favourable attitude of Government towards labour and change in the
social value of workers compelled the management to make a change in its attitude towards labour. The
workers which were regarded as commodity or as slave in earlier years, are now regarded as partners in
management.

(9) Problem of Coordination and Control—Large scale production created the problem of control
over the thousands of workers in an enterprise. The need of coordination between personnel objectives,
developed methods and techniques and overall objectives of the organisation was realised. The problem
of control, and coordination required personnel management.

(10) Changes in the form of business organisation—In earlier years, business was carried on under
sole proprietorship. With the advent of joint stock companies the size of the business has increased. So
new management techniques were developed to cope with personnel.